Disclosure of Drug Manufacture on Residential Real Property

 

By Walt Harvey (R), ABR, CRS, GRI, SRES, ePRO

 

A bill with the above title has been introduced in the Honolulu City Council. Known as Bill 60, it makes it the duty of the sellers of residential real property to disclose to potential buyers of the property if the property has been used as a site for the illegal manufacture of crystal methamphetamine, aka “ice”. The bill also makes it the seller’s agent duty to inform the seller of the seller’s disclosure requirement.

 

The seller’s duty to disclose is based on either of the following:

  1. The seller knew or, based on the circumstances, should have known that the property being sold was used as a site for the illegal manufacture of crystal methamphetamine; or
  2. The seller was provided with facts from:
    1. A government law enforcement agency;
    2. A managing agent of a homeowner’s association, including condominium, cooperative or community association; or
    3. An agent authorized to manage the property;

                  regarding the manufacture of crystal methamphetamine on the property.

 

The penalty for nondisclosure by the seller can be a maximum fine of $2000 and/or up to one year in prison. Any seller’s agent who fails to inform the seller of the disclosure requirement faces a $500 penalty.

 

The manufacture of crystal methamphetamine apparently releases chemical vapors that leave a toxic residue on carpets, drapes, even penetrates drywall according to Ed Kubo, US Attorney who spoke on the subject at our recent office meeting. Exposure to this residue can cause sickness and even be fatal. The cleanup required to make the property safe can be very expensive because Environmental Protection Agency rules must be followed and the property, once declared contaminated, must be certified “safe”. Cleanup costs can be in the tens of thousands and the health risks.

 

 

Walt Harvey is a real estate broker with East Oahu Realty and works with his wife Arla. They specialize in residential, commercial and investment real estate and can be reached on their website: www.coastalhawaii.com. Have a real estate question? E-mail us at walt@coastalhawaii.com or call 375-8959.

 

Published in Small Business News, October 2004 

 

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